US-based biopharmaceutical company Verastem filed for an initial public offering (IPO) with the US Securities & Exchanges Commission on Thursday, which could raise up to $50m.
The chief shareholders in Verastem include venture capital (VC) firm Longwood Founders Fund which owns 15.5% of Verastem, VC firm Bessemer Venture Partners and VC partnership Cardinal Partners which each own 13.5%, private equity investor MPM Bioventures which owns 13.2%, and VC firm Advanced Technology Ventures which owns 5.1%. Longwood was founded by Christoph Westphal, the former head of drugs company GlaxoSmithKline’s corporate venturing unit, SR One, which is also a limited partner in the VC firm.
Verastem has raised $48m in funding since its launch, closing a $32m series B round in July, following a $16m series A round in November 2010.
Verastem, which researches drug-based stem cell treatments for breast and other cancers, has made a net loss of $8.5m since its inception in August 2010. Verastem plans to invest the proceeds from the IPO in preclinical and Phase 1 clinical tests for its VS-507 drug candidate.